The Governments Campaign; ‘Building Britain’s Future’ Takes Shape with Investments in Technology and Advanced Manufacturing

Lord Mandelson, Secretary of State for Business, Innovation and Skills has announced a £3million investment in UK technology firms, as well as a £340million investment in the development of a new Airbus.

The investments form part of the Governments strategy ‘Building Britain’s Future,’ which includes the launch of several funds including the Capital for Enterprise Fund and the Strategic Investment fund, which is aimed at increasing Advanced Manufacturing, to keep the UK ahead of the competition.

The £75milion Capital for Enterprise fund was launched in January, to help growing companies’ access finance. The fund includes £50 million from the government, as well as £30 million from UK banks, which is managed by Octopus Investments.

The £3million investment includes £1million to IT systems business Vamosa, as well as £2million to KeTech, who provide communication software to rail companies, as well as the emergency services and construction businesses.

KeTech’s CEO, John Kearney, explains that he wrote to Lord Mandelson after having difficulty securing finance;

“Since the current economic crisis began, the lack of available credit, even to viable businesses such as KeTech, has significantly impaired our ability to keep growing. As a result, we turned to the Government for help.

“I am therefore delighted that the Octopus Capital for Enterprise Fund is injecting much-needed capital into KeTech. This will play a critical role in enabling us to secure profitable new contracts which regrettably, until now, we have been forced to turn away.”

The £340million investment for Airbus will aid the development of the new A350 XWB and ensure that Britain retains its position as a world leader in wing, landing gear and fuel integration systems technologies

The investment which is drawn partially from the Governments £750million strategic investment fund, will also secure more than 1,200 jobs within Airbus across Filton and Broughton sites as well over 5,000 within the supply chain across the UK.

Business Secretary Lord Mandelson said;

“This agreement is excellent news for the UK aerospace sector and for the thousands of British workers within Airbus and its UK-based supply chain”.

“The UK’s aerospace industry is world-class and capable of competing successfully with companies across the world. We recognise the vital role Airbus, and its supply chain, play in the UK.

“Aerospace is a sector that we are rightly proud of in the UK. It stimulates innovation across industry, demonstrates our capability to work with the most advanced technologies, and provides high-quality, highly skilled employment. It is a sector at the heart of our advanced manufacturing strategy.”

Click here to read more about the Government’s campaign ‘Building Britain’s Future.’

Lord Mandelson launches a £150 million Investment in Advanced Manufacturing.

Lord Mandelson, Secretary of State for Business, Innovation and Skills, has launched a £150 million package of funding and measures to help UK Advanced Manufacturers seize new opportunities.

Advanced Manufacturing describes businesses that produce technologically complex products and processes, using a high level of design or scientific skills.

Speaking at the Advanced Manufacturing Strategy Launch in London, Lord Mandelson highlighted the importance of UK Advanced Manufacturing to the economic recovery of the UK:

“The reality is that British Manufacturing employs more people than the financial services sector. We are the sixth largest manufacturer in the world and manufacturing is one of our biggest exports.”

“And for that reason it’s critical for Britain’s fight back to growth and in the decades ahead, for us to back manufacturing. And to back manufacturing means backing advanced manufacturing.”

“The next generation of British entrepreneurs, scientists and engineers will be among the most important Britain has ever produced. And we must back them and investment in them now.”

The £150 million investment includes:

• £45 million from the Strategic Investment Fund to help develop low-carbon aircraft engine technology.
• £40 million of support for the SAMULET Research and Technology Programme which will strengthen the position of UK aero-engine manufacturing and its supply chain through new technologies.
• £40 million of support for the expansion of the Printable Electronics Centre (PETec) in Sedgefield, creating over 1,500 jobs in the next 5 years.
• £45 million of funding in Rolls-Royce, to build four new Advanced Manufacturing Facilities in the UK – creating and sustaining around 800 jobs and sharpening Britain’s competitive edge in aerospace and civil nuclear global supply chains.
• £150 million investment from the ‘Innovation Investment Fund’, which Lord Mandelson hopes to increase to a venture capital fund of £1bn over the next ten years. This fund will help to back innovative companies that need growth capital.

Lord Mandelson believes that the investment will ensure that the barriers currently facing UK Advanced Manufactures will be minimised or removed, thus helping to support Britain’s Future:

“We also need to recognise the risks involved in trying to succeed in high-growth industries and technologies at an early stage of development. Risky expensive barriers, especially in the current economic conditions, from which in my view it is the Government’s job to help set businesses free. Our job is to take away those barriers which hold back the development of innovative and potentially high growing companies using these technologies.

So that’s where I believe there’s a clear role and responsibility for Government in making sure we have the best possible business environment and skilled workforce for advanced manufacturing.”

Click here to read the speech in full